Chicago, IL – November 10, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JP Morgan Chase (JPM), U.S. Bancorp (USB), Zions Bancorp (ZION), SunTrust Banks (STI) and PNC Financial (PNC).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday’s Analyst Blog:

Bank Failure Tally Reaches 120

The FDIC entered into a purchase and assumption agreement with Ameris Bank, Moultrie, Georgia, to assume all of the deposits of United Security Bank; Liberty Bank and Trust Company, New Orleans, Louisiana, to assume all of the deposits of Home Federal Savings Bank; Alerus Financial, National Association, Grand Forks, North Dakota, to assume all of the deposits of Prosperan Bank; Central Bank of Kansas City to assume all of the deposits of Gateway Bank of St. Louis; and East West Bank, Pasadena, California, to assume all of the deposits of United Commercial Bank.

In order to replenish the declining fund, the FDIC board recently proposed that approximately 8,100 insured U.S. banks and savings institutions should pay fees for three years in advance. Also, the regulators are considering requesting the healthy banks to bail out the government as soon as it is necessary to replenish the deposit insurance fund, which has slipped to 0.22% of insured deposits, below the mandated minimum of 1.15%.



In the second quarter of 2009, the number of banks on the FDIC's list of problem institutions grew to 416 from 305 in the first quarter. This is the highest since the savings and loan crisis in 1994. Increasing loan losses on commercial real estate are expected to cause hundreds more bank failures in the next few years. The FDIC anticipates the bank failures to cost about $100 billion over the next four years.



The failure of Washington Mutual last year was the largest in U.S. history. It was acquired by JP Morgan Chase (JPM). Other major acquirers of failed institutions since 2008 include U.S. Bancorp (USB), Zions Bancorp (ZION), SunTrust Banks (STI), PNC Financial (PNC), to name a few.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
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312-265-9380
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Chicago, IL – November 3, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: U.S. Bancorp (USB), JP Morgan Chase (JPM), Fifth Third Bancorp (FITB), Zions Bancorp (ZION) and SunTrust Banks (STI).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday’s AnalystBlog:

Bank Failures Zoom to 115

The nine banks had 153 offices, out of which California National Bank had 68 branches. California National Bank was the biggest of FBOP's banks, the nation's 101st largest with assets of $7.1 billion.

Failure of these institutions represents another impact on the Federal Deposit Insurance Corporation's (FDIC) fund for protecting customer accounts, as it has been appointed receiver for these banks. The failure of 115 banks has cost the federal deposit insurance fund more than $25 billion so far this year. The FDIC insures deposits at 8,195 institutions with roughly $13.5 trillion in assets.

When a bank fails, it reimburses customers for deposits of up to $250,000 per account. The outbreak of financial institutions failing has significantly stretched the regulator's deposit insurance fund. As on June 30, 2009, the fund corpus fell to $10.4 billion, the lowest since 1993, from $13.0 billion in the prior quarter.

Minneapolis-based U.S. Bank, a division of U.S. Bancorp (USB), has agreed to assume the deposits and most of the assets of these nine banks. The FDIC and U.S. Bank agreed to share losses on about $14.4 billion of the combined purchased assets.

In the second quarter of 2009, the number of banks on the FDIC's list of problem institutions grew to 416 from 305 in the first quarter. This is the highest since the savings and loan crisis in 1994.

Increasing loan losses on commercial real estate are expected to cause hundreds more bank failures in the next few years. The FDIC anticipates the bank failures to cost about $100 billion over the next four years.

In order to replenish the declining fund, the FDIC board recently proposed that the U.S. banks should pay fees for three years in advance. Also, the regulators are considering requesting the healthy banks to bail out the government soon as it is necessary to replenish the deposit insurance fund, which has slipped to 0.22% of insured deposits, below the mandated minimum of 1.15%.

The failure of Washington Mutual last year was the largest in U.S. history. It was acquired by JP Morgan Chase (JPM). The other major acquirers of failed institutions since 2008 include Fifth Third Bancorp (FITB), U.S. Bancorp, Zions Bancorp (ZION), SunTrust Banks (STI), among others.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Chicago, IL – October 20, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: CVB Financial (CVBF), JP Morgan Chase (JPM), Fifth Third Bancorp (FITB), U.S. Bancorp (USB) and Zions Bancorp (ZION).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday’s AnalystBlog:

U.S. Bank Failures Reach 99 in ‘09

The failure of San Joaquin Bank represents another impact on the Federal Deposit Insurance Corporation’s (FDIC) fund for protecting customer accounts as it has been appointed receiver for the bank. The bank failure is expected to cost the deposit insurance fund an estimated $103 million.

The FDIC insures deposits at 8,195 institutions with roughly $13.5 trillion in assets. When a bank fails, it reimburses customers for deposits of up to $250,000 per account. The outbreak of financial institution failures has significantly stretched the regulator’s deposit insurance fund. At June 30, 2009, the fund corpus fell to $10.4 billion, the lowest since 1993, from $13.0 billion in the prior quarter.

Ontario, California-based Citizens Business Bank, a subsidiary of CVB Financial (CVBF), will assume all of the deposits of San Joaquin Bank. So there will be no losses to any depositor.

In order to replenish the declining fund, the FDIC board recently proposed that the U.S. banks should pay fees for three years in advance. Also, the regulators are considering requesting the healthy banks to bail out the government as soon as it is necessary to replenish the deposit insurance fund, which has slipped to 0.22% of insured deposits, below the mandated minimum of 1.15%.

In the second quarter of 2009, the number of banks on the FDIC's list of problem institutions grew to 416 from 305 in the first quarter. This is the highest since the savings and loan crisis in 1994. Increasing loan losses on commercial real estate are expected to cause hundreds more bank failures in the next few years. The FDIC anticipates the bank failures to cost about $70 billion over the next five years.

The failure of Washington Mutual last year was the largest in the U.S. history. It was acquired by JP Morgan Chase (JPM). The other major acquirers of failed institutions since 2008 include Fifth Third Bancorp (FITB), U.S. Bancorp (USB), Zions Bancorp (ZION) and several others.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

On Tuesday, the Dow Jones industrial average, after gaining over sixty points in the morning, nose-dived 185.68 points, or 2%, to 9,310.60.  Since Friday, the index has lost 270 points, or 2.8%.  The S&P 500 fell 22.58, or 2.2%, to 998.04, while the Nasdaq composite index fell 40.17, or 2%, to 1,968.89.  Treasuries, which usually benefit from a fall in stocks, could garner only moderate gains.  Volume picked up on the NYSE where 1.63 billion shares exchanged hands as declining stocks beat those that advanced five to one.  The market’s measure of volatility, the CBOE Vix, shot up 12.1% to 29.2.  

The decline in stocks was broad based as all but one DJIA component ended in the red.  Only Wal-Mart (NYSE:WMT) showed some resistance, edging up 0.2%.  Financial stocks took a beating, hurt by analyst comments and rumors of a bank failure.  Leading the Dow average lower was Bank of America (NYSE:BAC), which slipped 6.4% to $16.46.  American Express (NYSE:AXP) slid 5.4% to $31.98 while another Dow component JP Morgan Chase (NYSE:JPM) retreated 4.1% to $41.67.  Citigroup (NYSE:C), though not in the Dow average, was another notable loser as its shares lost 9.2% to $4.54.   

A Sanford Bernstein downgrade sent shares of AIG (NYSE:AIG) down 20.6%.  The plunge wiped off much of the recent gains in AIG stocks.  Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) lost 17.6% and 17.0%, respectively, as traders decided to book profits after the recent advance in the shares. Wells Fargo (NYSE:WFC) shares dropped 4.8% even as the company announced plans to repay government bailout funds "shortly," without selling shares; the firm received $25 billion in TARP funds.  E*Trade Financial Corp. (NASDAQ:ETFC) slid 15% to $1.50.

This afternoon’s release of the FOMC minutes could be of interest, as investors weigh its wording for recovery and growth expectations, as well as sign posts of exit strategy plans.

The Dow Jones industrial average gained 94 points, or 1.1% and the S&P 500 index increased 8 points, or 0.9%. The NASDAQ index jumped 24 points, or 1.3%.  Volume remained moderate with only 1.2 billion shares exchanging hands on the New York Stock Exchange and advancing shares outpacing declining issues by a seven-to-three margin.  Stocks have rallied this week as better-than-expected earnings from Goldman Sachs (NYSE:GS) and Intel’s (NASDAQ:INTC) robust third quarter outlook have lifted sentiments on the Street.

Helping the sentiment further were reports that said New York University professor Nouriel Roubini who noted the recession is nearing its end.  However, after the markets closed, Roubini came out with clarifications saying a second stimulus package of $200 billion to $250 billion might be needed to improve labor market conditions and assure a less than anemic recovery.  Roubini said he still predicts the recession will end early next year.

Among the ten industry groups, nine recorded gains Thursday led by a 2.5% rise in basic material shares, 1.6% gains in technology stocks, and 1.0% increase in oil and gas stocks. Only telecom issues bucked the trend, closing off 0.3%.  Over the past five days, however, all sectors have moved higher, led by a 10.5% surge in basic material stocks, 8.9% in consumer services, 8.5% in financial shares, with tech and oil and gas issues up 6.6%.

Among DJIA components, American Express (NYSE:AXP) led with gains of 3.9% after JP Morgan Chase (NYSE:JPM) upgraded the stock to "neutral" from "underweight" noting second quarter results will be cushioned by a reduction in expenses and loan loss provisions, despite a fall in revenues.  IBM (NYSE:IBM) shares gained 3.2% ahead of its earnings release.  After the markets closed, the company reported earnings of $2.32 per share versus expectations of $2.01 a share, even as revenue fell 13% hurt by corporate spending cutbacks.  Nevertheless, the Big Blue noted that it will comfortably meet its 2010 earnings target of $10 to $11 per share. Disney (NYSE:DIS) shares added 3% after Sanford Bernstein upgraded the stock to "outperform" from "market perform," saying the stock is "too attractive to ignore" at current levels.  Alcoa (NYSE:AA) shares continued higher, up 3% on the back of general increases in economically-sensitive, commodity-related shares.

Ahead of today’s results, Bank of America (NYSE:BAC) shares fell 1.9%. Citigroup (NYSE:C), which is also expected to report earnings today, declined 2.8%. JP Morgan (NYSE:JPM) fell 0.4% despite is better-than-expected numbers on concerns regarding the firm's forecast of losses from its credit card business this year and in 2010, as well as higher commercial real estate losses over the next several quarters.

Mounting speculation over CIT Group (NYSE:CIT) could result in willingness to shelter profits today ahead of the weekend.  Two terrorist explosions in Jakarta and reports of a drop in US fuel demand to an 11-year low are also likely to weigh on sentiments.

Chicago, IL - June 18, 2009 - Zacks Equity Research highlights Walter Energy (WLT) as the Bull of the Day and Patterson-UTI (PTEN) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Goldman Sachs (GS), JP Morgan Chase (JPM) and AIG (AIG).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

We are reiterating our Buy recommendation on Walter Energy (WLT), and are raising our target price to $39.00 per share from $32.00 per share.

Although the weak steel market will adversely impact earnings in 2009, it will still realize favorable margins relative to other domestic coal producers, as it produces some of highest quality low-vol. met coal in the world.

We believe that the company's shift to a pure-play natural resource/energy increases shareholder value as we are bullish on the long-term coal supply and demand story.

Bear of the Day:

Our continued Sell recommendation on Patterson-UTI (PTEN) shares reflects our expectation of a sustained softness in onshore drilling activities, resulting from a combination of commodity-price weakness, too much natural gas supply and recession-hit demand, particularly in the industrial sector.

Patterson-UTI remains particularly vulnerable to this weak macro environment given its lack of contract coverage and heavy spot market exposure.

While the company remains in strong financial health, its recent decision to cut its quarterly dividend by 69% is a prudent move to conserve capital.

Latest Posts on the Zacks Analyst Blog:

Obama's Regulatory Reform Plan

The plan greatly extends the supervisory powers of the Federal Reserve as it would become a consolidated supervisor over all large financial institutions such as Goldman Sachs (GS), JP Morgan Chase (JPM), AIG (AIG), etc., whose problems pose potential risks to the economic system. However, the Fed would be required to receive approval from the Treasury for emergency lending under "unusual and exigent" circumstances.

The proposal will most likely be debated strongly as many critics of the Fed argue that its loose monetary policy and failure to exercise the existing powers over banks ultimately led to the current crisis.

In order to fill in regulatory gaps and coordinate with the various agencies, the plan would create a council of regulators headed by the Treasury Secretary.

The plan also requires all hedge funds and private equity funds to register with the SEC and open their books to regulators.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5508.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5509.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/ZacksInvestment

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

The administration has focused on five key areas for reform, which we have highlighted below along with the important actions proposed in those areas:

1) Promoting Robust Supervision and Regulation

• Raising capital and liquidity requirements
• Supervision by the Fed for all "too big to fail" firms
• Establishing a council of regulators for better coordination
• New National Supervisor to supervise all federally chartered banks
• Registration of hedge funds with the SEC
• Enhanced oversight of insurers

• Enhanced regulation of securitization markets
• Stronger regulation of credit-rating agencies
• Regulation of all OTC derivatives
• Payment & Settlement systems to be overseen by the Fed

• Establishing a new Consumer Financial Protection Agency

• Resolution mechanism for the orderly resolution of "too big to fail" financial companies
• Improving  accountability of Fed's emergency lending powers

The plan greatly extends the supervisory powers of the Federal Reserve as it would become a consolidated supervisor over all large financial institutions such as Goldman Sachs (GS), JP Morgan Chase (JPM), AIG (AIG), etc., whose problems pose potential risks to the economic system. However, the Fed would be required to receive approval from the Treasury for emergency lending under "unusual and exigent" circumstances.

The proposal will most likely be debated strongly as many critics of the Fed argue that its loose monetary policy and failure to exercise the existing powers over banks ultimately led to the current crisis.

In order to fill in regulatory gaps and coordinate with the various agencies, the plan would create a council of regulators headed by the Treasury Secretary.

The plan also requires all hedge funds and private equity funds to register with the SEC and open their books to regulators.

Some of the existing regulatory agencies' powers to oversee mortgages, credit cards and other kinds of consumer debt are proposed to be given to a new regulator, called the Consumer Financial Protection Agency.

The Office of Thrift Supervision will be merged into the Office of the Comptroller of the Currency, to create a single agency to supervise all banks with national charters.

The plan would impose tighter rules for securitization. It would also require the companies that issue mortgages to retain at least 5% of them on their books to discourage companies from marketing unsuitable loans.

The proposal also mentions that Treasury will work with other agencies to determine the future role of GSEs, Fannie Mae (FNM) and Freddie Mac (FRE) and a report will be presented at the time of 2011 budget release.

The administration has focused on five key areas for reform, which we have highlighted below along with the important actions proposed in those areas:

1) Promoting Robust Supervision and Regulation

• Raising capital and liquidity requirements
• Supervision by the Fed for all "too big to fail" firms
• Establishing a council of regulators for better coordination
• New National Supervisor to supervise all federally chartered banks
• Registration of hedge funds with the SEC
• Enhanced oversight of insurers

• Enhanced regulation of securitization markets
• Stronger regulation of credit-rating agencies
• Regulation of all OTC derivatives
• Payment & Settlement systems to be overseen by the Fed

• Establishing a new Consumer Financial Protection Agency

• Resolution mechanism for the orderly resolution of "too big to fail" financial companies
• Improving  accountability of Fed's emergency lending powers

The plan greatly extends the supervisory powers of the Federal Reserve as it would become a consolidated supervisor over all large financial institutions such as Goldman Sachs (GS), JP Morgan Chase (JPM), AIG (AIG), etc., whose problems pose potential risks to the economic system. However, the Fed would be required to receive approval from the Treasury for emergency lending under "unusual and exigent" circumstances.

The proposal will most likely be debated strongly as many critics of the Fed argue that its loose monetary policy and failure to exercise the existing powers over banks ultimately led to the current crisis.

In order to fill in regulatory gaps and coordinate with the various agencies, the plan would create a council of regulators headed by the Treasury Secretary.

The plan also requires all hedge funds and private equity funds to register with the SEC and open their books to regulators.

Some of the existing regulatory agencies' powers to oversee mortgages, credit cards and other kinds of consumer debt are proposed to be given to a new regulator, called the Consumer Financial Protection Agency.

The Office of Thrift Supervision will be merged into the Office of the Comptroller of the Currency, to create a single agency to supervise all banks with national charters.

The plan would impose tighter rules for securitization. It would also require the companies that issue mortgages to retain at least 5% of them on their books to discourage companies from marketing unsuitable loans.

The proposal also mentions that Treasury will work with other agencies to determine the future role of GSEs, Fannie Mae (FNM) and Freddie Mac (FRE) and a report will be presented at the time of 2011 budget release.

Chicago, IL - June 16, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AIG (AIG), Citigroup (C), Bank of America (BAC), JP Morgan Chase (JPM) and Vale (VALE).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday's Analyst Blog:

Regulation Reform on the Way

We totally agree that the regulation of the financial system urgently needs to be strengthened to avoid any crisis of current magnitude and dimensions in the future. In addition to the lack of exercise of regulatory powers (for whatever reasons), one of the main contributors to the current crisis was the complex and uneven regulatory system, which gave way to gaps and differences in degrees of oversight.

As a result, the financial institutions were able to shift risky products to less-regulated entities or entities having favorable accounting treatment. This calls for consolidated supervision of parent companies and all related entities as well as better coordination among all regulators.

The OTC derivatives include credit default swaps that caused the near-collapse of AIG (AIG). In view of the enormous size of the market and the threats these instruments pose to the financial system, their regulation is long overdue.

Also required is stronger coordination with regulators of other countries so as to effectively regulate financial giants like Citigroup (C), Bank of America (BAC) and JP Morgan Chase (JPM), which have operations all over the world.

Hold Vale on Chinese Negotiations

Last week, Vale (VALE) announced a price adjustment on iron ore between -28.8% and -44.47% with Japanese and Korean clients. However, the negotiations with Chinese clients continue as a seemingly endless soap opera. According to market sources, the Chinese want price cuts between 40% and 45% on iron, while the average cut for Japanese and Korean clients was around 35%.

As we said last week, the Chinese have built enormous inventories during the first quarter 2009 and is using them to pressure for better prices. However, last Friday it was announced that Chinese steel production has increased 7% in May from the previous month. In fact, steel production in China in May 2009 reached 46.5 million tons, quite close to the record level of 46.9 million tons on June 2008.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/ZacksInvestment

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

The administration has focused on five key areas:

• Raising capital and liquidity requirements for all institutions, consolidated supervision by the Federal Reserve for "too big to fail" firms and establishing a council of regulators for better coordination
• Robust reporting requirements on the issuers of asset-backed securities, reducing reliance on credit-rating agencies, harmonizing the regulation of futures and securities, and strong oversight of "over-the-counter" derivatives
• Stronger framework for consumer and investor protection
• Resolution mechanism for the orderly resolution of "too big to fail" financial holding companies
• Improving regulation and supervision around the world

As a result, the financial institutions were able to shift risky products to less-regulated entities or entities having favorable accounting treatment. This calls for consolidated supervision of parent companies and all related entities as well as better coordination among all regulators.

The OTC derivatives include credit default swaps that caused the near-collapse of AIG (AIG). In view of the enormous size of the market and the threats these instruments pose to the financial system, their regulation is long overdue.

Also required is stronger coordination with regulators of other countries so as to effectively regulate financial giants like Citigroup (C), Bank of America (BAC) and JP Morgan Chase (JPM), which have operations all over the world.

Let me begin with a little background. A credit default swap is sometimes described as an insurance contract written against the possibility of default of a particular underlying asset. If I buy a CDS and the specified asset defaults, I get to collect money from whoever sold me the contract. If I also have a long position in the asset in question, I might consider buying a CDS written against that asset as an insurance or hedge against the possibility that the asset loses its value.

But I don't actually have to own the asset in question in order to buy a CDS from somebody else. I might want to buy a CDS as a partial hedge against some other asset I hold with which the specified security could be correlated. Or maybe I just feel like making a bet with somebody I think is dumber than I am.

The fun and games begin when multiple contracts get written on a single credit event and the notional value of outstanding contracts on that event-- the total amount of money that is promised to be paid to the buyers of those CDS in the event of a default on the underlying asset-- becomes larger than the par value of the underlying asset itself. Then it would clearly pay the party who sold those contracts to buy the underlying asset itself at par, relieve the original debtors of their burdensome obligations, and be out only $X (the underlying event) rather than some multiple of $X (all the contracts written on the event).

And so the WSJ recounts the tale of a security based on $29 million (par) worth of subprime loans in California, half of which were already delinquent or in default. Betting that the loans weren't worth $29 million sounds like easy money, and the smart guys were willing to pay 80 to 90 cents for each dollar of CDS insurance.

It appears from the WSJ account as if little Amherst Holdings of Austin, Texas was happy to sell the big guys like J.P. Morgan Chase, Royal Bank of Scotland, and Bank of America something like $130 million notional CDS on a $27 million credit event, used the proceeds to buy off and make good the underlying subprime loans, and pocketed $70 million or so for their troubles. The big guys, on the other hand, paid perhaps a hundred million and got back zip.

Said big guys, naturally, are screaming bloody murder, trying to bring in the lawyers to show that Amherst wasn't playing by the rules of the game.

For my money, the first rule we need would be a law, not a rule, that notional not exceed actual.

Barring that, here's another rule I trust: a fool and his money are soon parted.

Yesterday, Wall Street responded with a yawn to Obama Administration's announcement that 10 of the largest banks could repay $68 billion of government bailout cash.  Although Treasury Secretary Geithner, appearing before the Senate Appropriations Committee, noted the repayment of the bailout money was a sign of "financial repair," stocks swung back and forth in a narrow range, signaling the much-expected announcement from the Treasury packed few surprises.  Technology stocks, buoyed by Texas Instruments' (NYSE:TXN) better-than-expected earnings and sales outlook, pushed Nasdaq higher while the Dow Jones Industrial Average and broad based S&P 500 index ended the day mixed.  The Tech-heavy Nasdaq rose 17.73 points, or 0.96%, to close at 1860.13.  The DJIA slipped about 0.1% to close at 8,763.06.  The S&P added 0.4% to close at 942.43. 

Some big financial institutions have been eager to escape increased federal involvement and the restrictions that come with being part of the Troubled Asset Relief Program.  Although the Treasury did not name the banks cleared to pay back the TARP funds, the ten institutions quickly confirmed they have been allowed to exit the government's financial assistance program.  Morgan Stanley (NYSE:MS), American Express (NYSE:AXP), JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS), Bank of New York Mellon (NYSE:BK), BB&T (NYSE:BBT), Capital One (NYSE:COF), Northern Trust (NASDAQ:NTRS), State Street (NYSE:STT) and US Bancorp (NYSE:USB) were cleared to pay back the rescue funds.  Commenting on the move, JP Morgan Chase & Co (NYSE:JPM) CEO Jamie Dimon noted, "Paying back TARP at this time is the right thing for JPMorgan Chase, and it's the right thing for our country."  Financial sector shares edged up 0.4%, with American Express (NYSE:AXP) topping the list of gainers on the DJIA with a 5% jump, as traders were relieved that the industry's rising rates of card delinquencies and the potential for increased attendant loan losses had not prevented government approval of its repayments.

Following Texas Instruments' (NYSE:TXN) improved guidance, semiconductor shares rallied with Advanced Micro Devices (NYSE:AMD) closing up 3.1%, Intel (NASDAQ:INTC) rising 3.4%, and National Semiconductor (NYSE:NSM) closing up 4.4%. According to a Bank of America (NYSE:BAC) analyst note, Microchip Tech (NASDAQ:MCHP) has been witnessing improved China orders.  BofA raised its price target on the company to $23.

Crude prices went beyond $70 per barrel on hopes a stronger economy will lift demand.  Dollar prices continued to remain under pressure.  Although concerns linger over the state of the world economy, commodities have recorded sharp gains recently as investors have increasingly turned towards crude to hedge against a weak dollar.  Yesterday's $35 billion auction of 3-year Treasuries met with strong demand, however, as a yield of 1.96% topped expectations, and the bid-to-cover ratio equaled 2.8%. Today's calendar is for $19 billion in 10-year notes, with $11 billion 30-years slated for tomorrow.  However, investors remain concerned that rising short-term interest rates will squeeze banking industry's net interest margins, in a sector that has already seen a 73% price run-up over the past three months.

Meanwhile, late Tuesday, the Supreme Court rejected an appeal from three Indiana state funds, consumer groups and others, clearing the way for the sale of most of Chrysler's assets to Italy's Fiat Group SpA. 

Afternoon sentiment will reflect release of the Fed's latest take on regional economic conditions, revealed in its Beige Book at 2:00 AM ET. The report is likely to recount the well-aired areas of economic weakness, namely, depressed housing markets, soft consumer demand, deteriorating employment opportunities, and downward price pressures. Indications of an economic recovery's "green shoots" of growth may help boost sentiment.

With the government's plan to sell $65 billion in debt this week, investors remain concerned that interest rates could be hiked sooner than expected.  Investors are also awaiting news from the Treasury Department, which is expected to announce which banks will be allowed to repay funds borrowed under the Troubled Asset Relief Program.  On Monday, some media reports suggested the US government will allow ten banks to pay back at least $50 billion in TARP funds.  The reports said JP Morgan Chase & Co (NYSE:JPM) is among the banks cleared to pay back TARP funds.  The list is also expected to include Goldman Sachs (NYSE:GS), American Express (NYSE:AXP), Bank of New York Mellon (NYSE:BK), Capital One (NYSE:COF) and State Street (NYSE:STT).  Countering interest rate hike expectations, however, were remarks which pointed out that the Fed has never begun raising interest rates before the unemployment rate, now at a 26-year high, has begun to fall.

Treasury yields continued higher yesterday, reflecting increased hope of an economic recovery.  The 2-year was up 12 basis points to 1.43% and the 10-year rose 5 basis points to 3.91%.  Commodities declined, with basic material sector shares falling 1.5%.  Crude prices continue to fall for the second day, easing 0.5% to $68.08 and copper was off 1.4%; gold prices dropped 1.1%. Alcoa (NYSE:AA) led the decliners on the DJIA with a 1.6% fall.  US Steel (NYSE:X) fell 3.7%, and Freeport-McMoRan (NYSE:FCX) declined 1.2%. Also those companies generating a large percentage of overseas revenues weakened on the stronger dollar, with DuPont (NYSE:DD) shares off 2.9%. Financials were the leading gainers on the DJIA, with American Express (NYSE:AXP) closing up 2.8%, JP Morgan (NYSE:JPM) rising 2.4%, and Bank of America (NYSE:BAC) registering a 1.7% advance.

Texas Instruments' (NYSE:TXN) second quarter revenue and earnings guidance and remarks from Intel (NASDAQ:INTC) that the first quarter represented a "bottom" in the PC market intensified hopes of an economic recovery.  Texas Instruments (NYSE:TXN) raised its revenue guidance to $2.3 billion to $2.5 billion from its prior view of $1.95 billion to $2.4 billion, and earnings per share view to 14 cents to 22 cents from its earlier view of 1 cent to 15 cents a share. 

Meanwhile, after the markets closed, the Supreme Court granted a stay in the sale of Chrysler's assets to Italian automaker Fiat.  The stay is expected to delay the bankruptcy proceedings and heighten nerves over the cost of automakers' bankruptcy in broad US employment numbers.

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Here are highlights from Thursday's Analyst Blog:

Consolidated Banking, Maybe?

Clearly the cobbled-together oversight from various federal agencies was ineffective to contain the current financial crisis that all but swallowed the U.S. last year -- institutions such as but not limited to Citigroup (C), Bank of America (BAC), JP Morgan Chase (JPM) and AIG (AIG) -- and it remains in fairly close proximity to do so again.

Several weeks ago, U.S. Treasury Secretary Timothy Geithner sent to Congress a proposal to potentially to overall the current supervision of financial markets. While much is still up in the air, it is now expected as early as mid-June 2009 that the Obama Administration will make a formal recommendation to Congress for the creation of a single banking regulator to oversee the entire sector. It would be hoped that if such a proposal were sent to Congress it woud be finalized by the end of the year to help resolve the current quagmire.

Currently, a disconnected grouping of state and federal regulators oversee financial institutions throughout the country. It is not anticipated that the Obama Administration will propose the elimination of this so-called "Dual Banking System."

The new regulator would serve as primary regulator for the nationally chartered banks and thrifts, serve as a secondary oversight for the more than 5,000 state-regulated banks and the primary regulator for the nationally chartered banks and thrifts, and help to streamline supervision of banks and make it harder for banks to game the system by shopping for the lightest form of oversight.

UTStarcom - Big Opportunities

We expect UTStarcom, Inc. (UTSI) , a provider of IP-based telecom equipments, to receive further demand for its IPTV solutions as mobile TV systems become increasingly popular in China and India due to nationwide deployments of 3G wireless networks.

UTStarcom's transformation from a mobile handset developer to an IPTV and optical transport solutions provider has been favorably implemented.

Moreover, the company's current valuation is below its net cash position. At the end of the first quarter, the company had approximately $2.41/diluted share of cash position with no outstanding debt.

On the other hand, the markets for IPTV solutions and intelligent switching products are highly competitive and this, together with global economic weakness, may hinder efforts to improve the company's earnings power.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

On Tuesday, U.S. stocks shot higher for the first time in five sessions as the Conference Board's consumer confidence index rose sharply in May, refueling hopes that the consumers are getting more optimistic about the economy.  The surprise rise in consumer confidence, which vaulted to 54.9 from 40.8 in April, offset dismal housing news and put investors back on buying track.  Traders, back after a long weekend, bought enthusiastically pushing every industry group on the S&P 500 stock index higher.  Nevertheless, declining home prices served a reminder that the economic outlook is yet to show signs of stabilization.  The consumer confidence index jumped to an eight-month high and marked its third rise in as many months. Volume on the NYSE was light as only 1.4 billion shares exchanged hands and advancing shares outpaced declining issues by a five to one margin.

The broad-based rally saw 28 of the 30 Dow components ending the day higher, with JP Morgan Chase (NYSE:JPM) leading the list of gainers, followed by a 5% rise in American Express (NYSE:AXP) shares.   Technology-focused Nasdaq surged 3.4%, helped by gains in computer manufacturers, Internet firms and search engines.  Apple (NASDAQ:AAPL) surged 6.7% after it was upgraded by Morgan Stanley (NYSE:MS) to "overweight."  Morgan Stanley (NYSE:MS) said analysts are underestimating demand for iPhones.  Qualcomm Inc. (NASDAQ:QCOM) jumped 4.8% to $43.29, after Barclays Plc raised its 2010 earnings estimates on the company.  Energy stocks also advanced as crude prices jumped to a six-month high, fueled by comments from Saudi Arabian Oil Minister Ali al-Naimi, who expects oil to hit as much as $75 per barrel between the third and fourth quarter on higher China consumption.  Exxon Mobil Corp. (NYSE:XOM) added 1.4% to $69.81.  Reuters expects crude inventory levels fell 1.1 million barrels over the past week, while gasoline levels dropped 1.8 million barrels. Tomorrow's OPEC meeting is generally expected to result in members maintaining current production levels.

Gains on the S&P 500 were led by financials and consumer-related stocks.  Financials were the leading gainers, up 4.1%.  Technology stocks rose 3.3%.  Industrials gained 3.3%.  Defensive areas of health care and consumer goods rose 1.6% and 1.2%, respectively.

J.C. Penny Co. (NYSE:JCP) rose 6.5% to $26.76 and Best Buy (NYSE:BBY) added 5.3% to $37.05.  Among financial shares, Wells Fargo (NYSE:WFC) added 5.5% to $25.65 and PNC Financial (NYSE:PNC) rose 5% to $43.25.  Restaurant chains and home builders also advanced.  Darden Restaurants Inc. (NYSE:DRI) rose 7.9% to $35.64. CKE Restaurants (NYSE:CKR) jumped 13.8% to $8.80.  Home builder KB Home (NYSE:KBH) rose 5.9% to $15.50, and DR Horton Inc. (NYSE:DHI) rose 5.1% to $9.47.

One of the bones of contentions of the past week had been the overhanging Treasury auctions scheduled for this week amid a ballooning budget deficit necessitating further sales to meet the $2 trillion in extra debt needs expected this year.  However, the record-tying $40 billion in 2-years auctioned yesterday met with bids 2.94 times the offered amount and the 2-year note sale received strong response, with $117.5 billion in bids coming in for $40 billion in debt.  The US dollar edged up 0.1% against a basket of currencies.

Today's data includes the expected turndown by General Motors' (NYSE:GM) bondholders of its offer to convert their holdings into company shares, making bankruptcy the foregone conclusion it has been for a while.

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Here are highlights from Tuesday's Analyst Blog:

Jumping Through the TARP Hoops

Goldman Sachs (GS), JP Morgan Chase (JPM), Morgan Stanley (MS) and American Express (APX) are "champing at the bit" to repay funds received from the Troubled Asset Relief Program (TARP), in order to avoid tighter regulations associated with these funds (i.e compensation limitations) and as a way to signal to investors the company's financial strength. The government will receive repayment, but there are some caveats.

First and foremost, no institution will be allowed to repay TARP until 10 of the 19 biggest banks present plans to boost their capital under the government's stress tests -- by early June 2009. These institutions will have to pass another stress test, as well as issue non-government guaranteed debt, thereby demonstrate the ability to self-fund in the market. Then, if the regulators will certify that an institution is sound without government help, groupings will be permitted to repay TARP funds.

Digital River Surging

Shares of Digital River (DRIV) have climbed approximately 8% since our last update on the company on April 15. Today, DRIV is up nearly 3% and the company is presenting at a sell-side firm research conference in San Francisco, CA.

The company's Q1 results beat our/consensus estimates by a decent margin. The upside was driven mainly by a ramp in the Consumer Electronic (CE) segment and new client wins, both of which offset the effect of current global economic downtrend. However, Q2 guidance fell short of our non-GAAP estimates, while revenues are expected slightly higher than our current expectation.

We were expecting the company to report $95 million in revenue (guidance is at $96 million) with non-GAAP EPS of $0.44 (guidance is at $0.41). Higher capex and lower margins from the new CE customers are likely to dampen bottom-line performance in Q2. Nevertheless, DRIV shares have continued their upward momentum, likely reflecting 2H performance from both the CE and Software segments.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Following the results of regulatory stress tests, several large banks are now seeking permission to return bailout funds received under the Troubled Asset Relief Program (TARP) to finally rid themselves of government intervention. The race for the first place now seems to be between JP Morgan Chase (JPM), Goldman Sachs (GS) and Morgan Stanley (MS).

"We believe we can and should be able to repay TARP," JP Morgan Chief Executive James Dimon said, "in the next few weeks". Speaking at the bank's annual shareholder meeting in lower Manhattan, Dimon said the TARP had been a "traumatic" experience and he would like to repay the $25 billion it received as soon as it got approval from the Federal Reserve.

According to news sources, JP Morgan, Goldman Sachs and Morgan Stanley have already applied to refund a combined $45 billion of TARP funds but the Federal Reserve is not expected to make any statement in that respect before the week of June 8.

Treasury Secretary Timothy Geithner has said that the Obama administration welcomes banks that want to repay funds from the $700 billion TARP. However, industry experts believe that he might delay approval for the refund til the government issues some broad constraints on compensation for the financial sector. One of the reasons behind the banks' fervor for returning the funds is because government intervention includes limitations on executive pay.

The government's stress tests already indicated that Goldman Sachs and JP Morgan did not require additional capital to exit the financial crisis. Morgan Stanley was asked to raise $1.8 billion, which the bank met by selling shares.

While most of the smaller banks that received funds have already repaid the capital, if the three New York banks get approval to return the funds, it would be the largest payback of taxpayers' money. The banks also have to decide whether they want to buy back the warrants that the government holds as part of the TARP agreements.

Investors can find such funds by checking out the Zacks #1 Rank Financial Equity Funds list.

2 Solid Picks

FBR Small Cap Financial (FBRSX) invests at least 80% of its assets in securities of small-cap companies with market capitalization of less than $3 billion. The fund focuses on companies that invest in real estate, usually through mortgages or other consumer-related loans.

Since its inception in December 1996, this Zacks #1 Rank fund has been managed by David Ellison of FBR Fund Advisers Inc. Previously, Ellison was a portfolio manager with Fidelity Investments. The fund distributes dividends and capital gains annually. As of January 2009, its portfolio turnover was 147%.

Investors have to make minimum initial investment of $2,000 to enter the fund. FBRSX's top holding include Hudson City Bancorp Inc. (HCBK) and Danvers Bancorp Inc. (DNBK).

Burnham Financial Services A (BURKX) seeks capital appreciation and invests primarily in U.S. companies in the financial services sector with market capitalization of $8 billion or less.

The fund may invest up to 20% of its assets outside the financial services sector and in debt securities from any government or corporate issuer. It may also invest up to 15% of assets in foreign securities. The fund pays dividends and capital gains annually. As of December 2008, the fund had a turnover of 190%.

Anton Schutz has been the lead manager of the fund since June 1999. J.P. Morgan Chase & Co. (JPM) and TFS Financial Corporation (TFSL) are among the top holding of the fund.

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Full analysis of all these stocks is available at: http://at.zacks.com/?id=2678

Bull of the Day

Transocean Ltd. (RIG) reported strong first-quarter 2009 results driven by solid contribution from the high-specification floaters and significant cost control measures. Transocean continues to generate significant cash flows supported by a $36 billion backlog, which is of a very high credit quality.

The company is deploying its ample cash flows to strengthen its balance sheet and invest in its newbuild program.

Our Buy recommendation remains unchanged, though we have lowered our estimates to reflect a relatively softer outlook for the mid-water and jack-up fleet. Our new 2009 and 2010 EPS estimates are $13.10 and $12.85, down from $14.26 and $14.95, respectively.

Bear of the Day

We are maintaining our Sell recommendation on Gerdau S.A. (GGB) based on poor first quarter results and a huge decrease in demand for steel worldwide.

The huge decline in steel prices and the international economic slowdown creates a more challenging business environment for the steel industry. The company's strategy to grow through acquisitions based on debt is contributing to the negative news.

Moreover, huge exposure to the U.S. market during a recession is a major concern. Our target price is $5.75 per share.

Recent Analysis from the Analyst Blog

New Financial Sector Pay Rules

New compensation rules are likely to be issued as a part of broader financial-markets regulation reforms that the Treasury is currently working on. Earlier this year, the government had issued guidelines limiting salaries for top executives at firms that received bailout funds from the Troubled Asset Relief Program (TARP).

Currently many banks, including Goldman Sachs (GS), JP Morgan Chase (JPM) and US Bancorp (USB) are preparing to repay TARP funds mainly to escape the government restriction and oversight on compensation. New rules would bring back these companies under government oversight on compensation.

An era of deregulation and a compensation structure that rewarded excessive risk-taking created the financial mess that we are in. While micromanagement of the financial sector by the government is undesirable, we certainly need to prevent any excessive risk taking behavior in the future, as also ensure that incentives are tied to long-term performance.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2677.

About Zacks 

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks InvestmentResearch is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:Mark VickeryWeb Content Editor312-265-9380Visit: www.zacks.com

Before we begin, let's explain the contrarian stance that makes Schaeffer's so unique. When searching for a bullish pick, we like to see heavy skepticism toward an outperforming stock, as this leaves ample room for upgrades or other positive catalysts to fuel the stock higher. When searching for a bearish pick, on the other hand, contrarians are looking for significant bullish sentiment toward an underperforming stock, as we believe an excess of optimism is a sign that everyone has already bought into the stock and sideline money is virtually tapped out.

However, keep in mind that some optimism and pessimism is genuinely warranted and isn't always a contrarian indicator - like an outperforming stock with many "buy" ratings or an underperforming stock with a plethora of "sell" ratings.

The Unusually Heavy Call Volume Filter

The Unusually Heavy Call Volume filter looks for stocks that saw call volume trade on the previous day that was significantly above the stock's average daily call trading volume. Why is this important? Well, a stock that is seeing heavy call trading is a good indication that expectations for the security to rally are extremely high. This activity could also be an indication that the company is expected to report earnings or some other news relatively soon.

From a contrarian perspective, we are looking for a stock that has high investor expectations (such as heavy call trading) and weak technical performance. This combination of technical weakness and high expectations leaves the stock vulnerable to a sharp downside move should the equity fail to live up to expectations, forcing investors to close out their long positions.

A Touch of News

On Thursday, Target (TGT) reported that April same-store sales rose 3.1%, missing the Street estimate. The firm said that consumers shopped for necessities such as food, and skipped higher-priced items such as jewelry. In addition, results were weakest where the housing slump hit hardest, including Florida, Arizona, Nevada and parts of California. Total sales for the month climbed by 9% to $4.25 billion. Year-to-date, same-store sales fell 0.7% while total sales rose 5% to $14.3 billion.

On Tuesday, May 6, the firm revealed that it sold 47% of its $8.2 billion credit card portfolio to J.P. Morgan Chase for $3.6 billion. Under terms of the sale, the portfolio's performance must remain "sufficiently strong." And if "substantial unanticipated portfolio deterioration" occurs, JPM would gain the right to direct Target's credit card team to put in place alternative underwriting and risk management practices until sufficient improvement is seen.

In addition, TGT boosted its estimate for net write-offs on the credit card portfolio to 7% to 8% of receivables for the year, up from just more than 7%, and said it expects delinquencies as a percentage of receivables of 4%.

Technically Speaking...

Shares of TGT have dropped below a trendline connecting a series of the stock's higher lows going back to its mid-March lows. This break down could signal that the shares are entering a short-term downtrend.

From a longer-term perspective, we find that the security is faced with staunch resistance at its declining 10-month moving average near the 56 level. This trendline has capped the shares since October 2007 and could easily cap any rally attempts during the long term.

Call Trading Dominates

Calls have been the option of choice among investors. The Zacks Unusually Heavy Call Volume filter revealed that a total of 71,647 calls traded on TGT on Thursday. This compares to the stock's average daily trading volume of 21,549 contracts. In other words, call trading was 3.3 times as heavy.

The Schaeffer's put/call open interest ratio for TGT dropped sharply overnight, falling from 1.01 to its current perch of 0.94. This decline in the ratio indicates that call open interest grew at a faster pace than put open interest among near-term options. This combination of weakening technicals against the stock's sentiment backdrop of growing optimism has bearish implications from a contrarian perspective. Should the shares fail to rally as expected, the stock could be hit with a significant wave of selling pressure as these optimism unload their long positions.

Zacks Investment Research

The fund primarily invests in municipal securities, the interest from which is exempt from federal income tax, including the federal alternative minimum tax. It seeks to maintain an average portfolio maturity of between 3 years and 10 years.

The fund declares dividends every business day and pays it on the last business day of every month. Capital gains are distributed annually. The fund has an expense ratio of 0.48%.

Schwab Financial Services (SWFFX) was incepted in July 2000. The fund seeks long-term capital growth by investing primarily in equity securities issued by companies in the financial services sector.

The fund generally invests in U.S. companies and may invest in companies of all sizes. It may also invest in futures contracts. As of March 2009, its portfolio turnover was 59%.

The fund's key holdings include J.P. Morgan Chase & Co. (JPM), State Street Corp.(STT) and SunTrust Banks Inc. (STI).

Schwab Health Care (SWHFX) seeks long-term capital growth by investing primarily in equity securities issued by companies in the health care sector.

The fund may invest in common stocks and other equity securities of foreign companies. It offers dividends and capital gains annually. Unit holders have to make a minimum initial investment of $100 to enter this Zacks#1 Rank ("Strong Buy") fund that has an expense ratio of 0.82%.

Johnson & Johnson (JNJ), Baxter International Inc. (BAX) and Amgen Inc. (AMGN) are among the fund's top holdings.

Financials were the leading gainers yesterday, with a 3.6% advance, ahead of today's release of methodologies employed in the stress tests given to 19 US banks, intended to indicate the banks' abilities to survive more adverse economic conditions. The consensus belief is that most banks will fare relatively well, passing the tests, but the nervousness is intact until the results are declared on May 4. Credit card firms saw a jump in their stocks yesterday after President Obama's meeting with senior executives of Bank of America (NYSE:BAC), JP Morgan Chase (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), US Bancorp (NYSE:USB), Visa (NYSE:V), MasterCard (NYSE:MA), Capital One Financial (NYSE:COF), American Express (NYSE:AXP), Discover Financial Services (NYSE:DFS) and several other firms. Obama's conciliatory tone soothed nerves, sending shares of Wells Fargo (NYSE:WFC) up 10.5%, Capital One (NYSE:COF) up 17.7%, and American Express (NYSE:AXP) up 7.9%. Today's docket will witness applicants for five positions as managers for raising funds in the governments' program to create a market for banks' illiquid, mortgage-backed assets clogging balance sheets. Candidates include Blackrock (NYSE:BLK), Pimco, and Bank of New York Mellon (NYSE:BK).

Economic posts yesterday failed to give any indication of a budding recovery, as US labor and housing posts continued to disappoint. Initial jobless claims rose 27,000 to 640,000, inline with analyst expectations. Continuing claims advanced to a record 6.137 million. On the housing front, existing home sales revealed a surprisingly large 3% drop in March to an annual rate of 4.57 million.

Today's key items of interest include March durable goods orders, expected to reverse February's 5.1% rise with a decline of 1.5%. Excluding autos, orders are expected to have dropped 1.3%, reversing the prior month's 3.9% jump. New home sales for March are expected to hold steady at 337,000. Disappointment outweighs chances of a pleasant surprise, following last week's Census Bureau report that new-home construction fell 9% in March from the prior month's pace. Also meeting are leaders of G7, with Treasury Secretary Geithner slated to speak after the meeting at 4:30 PM ET.

On the corporate front, Microsoft's (NASDAQ:MSFT) headline results indicated a 30% decline, on "a broad-based slowdown across virtually all product lines and geographies" according to the firm's CFO, who also expects the recovery to be slow and gradual. However, Microsoft shares rose in after-market trading as results ex-items matched estimates and release of its Windows 7 operating system appears on track.  Bellwether UPS (NYSE:UPS) warned of a challenging second quarter, although hopeful the economy would bottom later this year. Steelmaker Nucor (NYSE:NUE) rued a virtually nonexistent demand for steel.

Chicago, IL - April 20, 2009 - Zacks Equity Research picks Biogen Idec (BIIB) as Bull of the Day and Liberty Property Trust (LRY) as Bear of the Day. In addition, the analysts at Zacks Equity Research discuss the latest on BB&T Corp. (BBT), Goldman Sachs (GS) and JP Morgan Chase (JPM).

Full analysis of all these stocks is available at: http://at.zacks.com/?id=2678

Bull of the Day

Biogen Idec (BIIB) posted solid results in the first quarter of 2009, despite the slowdown in Tysabri sales due to fears of PML. We think the Biogen core business will remain strong over the next several quarters. Tysabri prescriptions are showing an improvement and we believe will resume their previous pace shortly.

In the meantime, the name is significant under-valued and would be a very attractive takeout candidate for a large-cap pharmaceutical company looking for a great phase III pipeline. We expect 2009 to be an eventful year on the pipeline front.

As investors become more comfortable with both Tysabri trends and emerging pipeline, we believe shares will recover back into the low $60 s. At today s price, the name is too attractive to ignore.

Bear of the Day

Office and industrial markets continue to weaken throughout the US, which is bad news for Liberty Property Trust (LRY). In the current environment, we do not favor suburban industrial/office companies as rental rates and occupancies continue their downward trend.

The company recently cut its quarterly payout to $0.475 per share, 24% lower than the previous payout. Negative job growth trends will keep shares under pressure. Despite the economic downturn in the US, operations held up relatively well in 4Q08. In addition, the company has used to debt and equity to raise capital in a tight credit environment.

LRY now has plenty of liquidity to address near-term debt maturities. We maintain our near-term Sell rating based primarily on macroeconomic factors.

Recent Analysis from the Analyst Blog

BB&T Better Than Expected 

BB&T Corp. (BBT) reported its 1Q09 financial results before market open, with a conference call held later this morning. Operating earnings for the quarter came in at $187 million or $0.33 per diluted share, two pennies ahead of consensus. Though the company had a decent growth in loans and deposits and increased production in mortgage banking operations, credit quality worsened sharply, mainly due to deterioration in its housing loan portfolio in Florida, Atlanta and Metro D.C. areas.

BBT joined the group of banks, including Goldman Sachs (GS) and JP Morgan Chase (JPM) waiting to be de-TARP-ed, as soon as possible. During the conference call, the CEO said that the bank would pay back TARP funds as soon they get government approval to do so, (presumably after the stress tests are completed), as he considers it to be "destructive."

Net interest income for the quarter was $1.2 billion, up 1.6% sequentially and average loans and leases for the quarter increased to $97.3 billion, with growth spread in all categories except the retail loans and mortgage loans. Average deposits increased 8.5% year-over-year to $93.9 billion.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2677.

About Zacks 

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks InvestmentResearch is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:Mark VickeryWeb Content Editor312-265-9380Visit: www.zacks.com

The result was a surprise as 6 brokerage analysts had lowered estimates for the quarter over the past 30 days, pulling the consensus lower by 3 cents to 32 cents a share.

The stock surged over 12% today on higher-than-usual volume of 21 million, compared to average volume of about 12.5 million.

BB&T, which received $3.1 billion TARP funds from the US government, becomes the latest bank to beat expectations after both Wells Fargo (WFC) and JP Morgan Chase (JPM) surprised investors.

BBT's net interest income during the quarter grew 12.7% year-over-year to $1.15 billion, while non-interest income posted a growth of 33.7% year-over-year to $1.03 billion.

The full-year consensus estimate has declined 10 cents over the past 30 days to $1.50 a share.

BBT is a Zacks #3 Rank ("Hold") stock.

Chicago, IL - April 17, 2009 - Zacks Equity Research picks Abbott Laboratories (ABT) as Bull of the Day and Logitech International, Inc. (LOGI) as Bear of the Day. In addition, the analysts at Zacks Equity Research discuss the latest on Wells Fargo (WFC), JP Morgan (JPM) and Regions Financial (RF).

Full analysis of all these stocks is available at: http://at.zacks.com/?id=2678

Bull of the Day

Abbott Laboratories (ABT) discovers, develops, manufactures and sells a diversified line of healthcare products. We expect high-single digit EPS growth over the next five years driven by strong sales of Humira and the company's rapidly growing vascular business.

Several new drug applications have recently been filed with the FDA which should accelerate sales in the pharmaceutical business.

We believe ABT possesses a low risk profile and will continue to trade at an industry premium. Accordingly, we reiterate our Buy recommendation with a price target of $65.

Bear of the Day

Logitech International, Inc. (LOGI) reported results for the third quarter of 2009 with weaker than expected revenues and earnings due to weakening demand, lower gross margin and higher effective taxes. The company currently assumes that this relatively weak macroeconomic environment will weaken further in the coming months.

Its outlook anticipates that the economy will have an impact on the European consumer as well. It plans to reduce global salaried workforce by between 550 and 600 employees, and this is expected to generate annual cost savings beginning in 2010 of approximately $50 million.

We now estimate that revenue and EPS will reduce by 2.5% and 26.5% respectively in 2009 compared to 2008. We are maintaining a Sell on LOGI with a target price of $11.00.

Recent Analysis from the Analyst Blog

TARP Recipients Not Lending More 

Except for housing lending, banks extended less credit to businesses and consumers in February compared to January. The median decline in total lending was 2% in February, with nine banks reporting an increase in lending and 12 banks reporting a decline.

Housing loans have picked up recently as a result of record low mortgage rates, as we have seen in the recent results/preannouncements of banks like Wells Fargo (WFC), JP Morgan (JPM) and Regions Financial (RF). During the month, residential mortgage originations increased by 35%, mainly due to the surge in refinancing of existing mortgages. Mortgage refinancing increased of 42% and home equity originations increased 18% month-over-month.

Loan origination for other consumer lending products, including auto, student and other consumer loans, decreased by 47% from January to February.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2677.

About Zacks 

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks InvestmentResearch is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:Mark VickeryWeb Content Editor312-265-9380Visit: www.zacks.com

U.S. markets closed modestly lower Monday paring losses recorded earlier in the day amid banking worries and investor concerns that gloomy earnings and outlook will hurt technology, commodities and industrial shares.  The KBW Banking index slipped 3.8% after a prominent banking analyst advised selling banking stocks.  Calyon Securities analyst Mike Mayo in a report titled "Seven Deadly Sins of Banking" warned bank losses could exceed levels seen during the Great Depression.  Stocks advanced in the late afternoon session paring some losses but the rally was checked after reports emerged that talks for IBM Corp.'s (NYSE: IBM) $7 billion deal to buy Sun Microsystems (NASDAQ: JAVA) had hit a roadblock. Sun Microsystems (NASDAQ: JAVA) shares plunged 23%.

Mayo started coverage on several banking stocks with an "underperform" or "sell" rating.  Among securities initiated with a sell rating were: BB&T Corp (NYSE:BBT), Fifth Third Bancorp (NASDAQ:FITB), KeyCorp (NYSE:KEY), SunTrust Banks (NYSE:STI) and US Bancorp (NYSE:USB). Underperform ratings were assigned to Bank of America (NYSE:BAC), Citigroup (NYSE:C), Comerica (NYSE:CMA), JP Morgan (NYSE:JPM), PNC Financial Services Group (NYSE:PNC), and Wells Fargo (NYSE:WFC).

Toward the end of the day, however, banking analyst Meredith Whitney supported the outlook for the banks, expecting a rise in share prices upon realization of the group's rising tangible book values, although still maintaining that the sector may not get "out of the woods" until mid-2010.  This morning a London newspaper report cited an IMF projection likely to place banks' toxic debt level at as much as $4 trillion, up from its January estimates of $2.2 trillion.

Among declining banking stocks, JP Morgan Chase (NYSE: JPM) lost 3.7% to $28.20, Well Fargo (NYSE: WFC) dropped 6.7% to $15.25 and SunTrust Banks (NYSE: STI) fell 8.1% to $12.70. The Dow Jones Industrial Average slid 41.74 points, or 0.5%, to 7975.85. Tech-heavy Nasdaq declined 15.16 points or 0.93% at 1,606.71. The Standard & Poor's 500 Index .SPX lost 7.02 points, or 0.83 percent, to 835.48.

Investors preferred to remain on the sidelines on the eve of the earnings season which kicks off today with Alcoa's (NYSE:AA) expected post of a quarterly loss after the close. NYSE volume slowed to 1.3 billion shares, as declining issues outpaced advancing shares by more than two to one. The Vix volatility measure headed up from Friday's two-month lows, with a 3.1% jump to 40.93.

The Baltic Dry Index, widely interpreted as a measure of world trade, fell to its lowest point since February 4, down 1.3% on Monday, sending economically-sensitive oil and gas and basic material sector stocks down 2.2% and 1.7%, respectively. Rio Tinto (NYSE:RTP) announced plans to slow construction of an aluminum refinery and cut bauxite production citing dwindling demand.  Deutsche Bank (NYSE:DB) slashed its projections for steel maker earnings, citing lower prices and demand.

Automakers remained in focus as Ford (NYSE:F) reported results of a tender offer which reduced the firm's debt by 28% from $25.8 billion at the end of 2008. The auto maker's shares topped the list of S&P performers Monday, rising 16%, upon its elimination of $9.9 billion in debts. Nevertheless, S&P dropped its credit ratings on the company. Moreover, a Barron's article noted the company likely to benefit from problems at General Motors (NYSE:GM) and Chrysler. General Motors (NYSE:GM) shares gained 8.1%, topping the list of gaining issues on the DJIA.

Goldman Sachs (NYSE:GS) removed Cisco Systems (NASDAQ:CSCO) from its "conviction buy" list, saying growth expectations were "largely priced in."

Today's expected reports include February's consumer credit figures (2:00 PM ET). Consumer credit is expected to show a contraction of $3.0 billion following its $1.8 billion increase in January. The SEC meets tomorrow at 9:00 PM ET to address the uptick rule. Among companies due to release quarterly results are: Alcoa (NYSE:AA), Bed Bath and Beyond (NASDAQ:BBBY), Chattem (NASDAQ:CHTT), and Mosaic (NYSE:MOS).

The Treasury is working with the Federal Reserve, the President's Working Group on Financial Markets, and Congress to put the rules in place.

The framework for regulatory reform will cover 4 broad areas: systemic risk, consumer and investor protection, eliminating gaps in the regulatory structure and international coordination.

Geithner will provide the details for each of these areas in the coming weeks while he focused on the systemic risk reforms in today's testimony.

The key elements of the plan to address systemic risk are:   

• 1) Establishment of a Systemic Risk Regulator    
• 2) More conservative capital requirements for important financial institutions  
  
• 3) Registration of private investment funds with assets over a certain threshold with the SEC    
• 4) Comprehensive framework for oversight of the OTC derivatives market    
• 5) Stronger requirements for money market funds to reduce the risk of withdrawals of funds    
• 6) Stronger resolution mechanism for potential failure of large complex financial institutions

Similarly, proposed oversight of exotic derivatives like the credit-default swaps (CDS) that were used both to hedge against but mostly to speculate on high-risk mortgage-backed securities. The market for CDS has ballooned to trillions of dollars, but has remained unregulated.

Other proposals like establishment of a systemic risk regulator, with authority to seize and restructure impaired firms like AIG (AIG) before they threaten the broader system are critically required. Equally important is the coordination among the national supervisors to properly oversee the risks of financial behemoths like Bank of America (BAC), JP Morgan Chase (JPM), Citigroup (C), which have operations all over the world. Please see Dirk's blog for more analysis on the issue

He outlined four key elements for the regulatory overhaul:

1. The need to address the problem of "too big to fail" financial institutions. While emphasizing the need to prevent the failure of such institutions in view of the risks to the financial system and the broader economy, he warned that such belief reduces market discipline and encourages excessive risk-taking by the firm. He recommended close supervisory oversight of risk-taking, risk management, and financial condition of such institutions.

2. Consolidated supervision of all systemically important financial firms organized as holding companies. The consolidated supervisors must have clear authority to monitor and address safety and soundness concerns in all parts of the organization, not just the holding company.

3. Orderly resolution of systemically important nonbank financial firms, including a mechanism to cover the costs of the resolution.

4. Developing appropriate resolution procedures for potentially systemic financial firms, including bank holding companies.

Also required is stronger coordination with regulators of other countries so as to effectively regulate the financial behemoths like American International Group (AIG) Citigroup (C), Bank of America (BAC) and JP Morgan Chase (JPM), which have operations all over the world.

• Making efforts to reduce the borrower's monthly mortgage payment to 38% of his or her income
  
• Providing incentives to servicers for making modifications
  
• Creating an insurance fund up to $10 billion to discourage lenders from opting to foreclose
  
• Allowing judicial modifications for Borrowers Who Have Run Out of Options
  
• Providing $1.5 Billion in relocation and other forms of assistance to those displaced by foreclosure and $2 Billion in Neighborhood Stabilization Funds

Wells Fargo & Co. (WFC) posted a surprise quarterly loss on Wednesday but its share price still gained 25% as the second-largest U.S. home lender retained its dividend and said it would not need more federal aid to absorb the troubled Wachovia Corp.

For the fourth quarter, Wells Fargo reported a net loss of $2.55 billion, or 79 cents per share, compared with a profit of $1.36 billion, or 41 cents, a year ago. Excluding numerous charges, it had a profit of 41 cents, topping the consensus estimate of 34 cents.

Wells Fargo Chief Financial Officer Howard Atkins said that a $5.6 billion credit reserve and the $3.9 billion provision related to the Wachovia takeover had led to the quarterly loss. The company also took charges of $294 million as some of its customers affected by Bernard Madoff's alleged Ponzi scheme were unable to pay their loans.

In spite of the quarterly loss, the company maintained its quarterly dividend of 34 cents per share, putting to rest speculation that it might need to slash its distribution in order to improve liquidity. Wells Fargo said it didn't need more taxpayer funds in addition to the $25 billion it has already received to avert the ongoing financial crisis.

Wells Fargo, along with JP Morgan Chase (JPM), are widely viewed as the two banks that are holding up better than their peers in the current downturn. Wednesday's update from Wells Fargo, coupled with hope that the Obama administration may absorb toxic assets, sent the shares up as high as $20.50 at midday on the New York Stock Exchange.

Bank of America Corp. (BAC) sank to an 18-year low today on speculation that the company might need government support to resurface from losses it absorbed during its acquisition of Merrill Lynch.

In December, Bank of America said it might abandon plans of acquiring Merrill, due to more of the company's toxic assets coming to fruition in the fourth quarter. However, the government's insistence on closing the deal to bring stability to financial markets bore fruit in the end, and it now appears that the deal was completed at the cost of taxpayers.

This reopens the troubling chapter of the American financial crisis, with its reverberations being felt globally. The FTSE 100 index of Britain closed down 1.4% at 4,121.11, while Japanese Nikkei plunged 4.9 percent, to 8,023.31. The Dow Jones industrial average was trading down 43.49 points, or 0.53% at 8,156.65.

Investors all over the world are now questioning whether the big banks have enough capital to cover soaring credit losses as economic conditions worsen. Although many banks have already received huge bailout funds from the government, they are far from recovery.

Citigroup (C), which received $45 billion, is expected to shrink to about one-third its original size to save the company. Wall Street is now preparing for Citi's fifth consecutive multibillion-dollar quarterly loss this Friday.

One small silver lining was JP Morgan Chase & Co.'s (JPM) fourth-quarter results, reported this morning, with profit dropping 76% from last year but coming in ahead of the average analyst forecast. The company's quarterly earnings came in at $702 million, or 7 cents per share, while the consensus estimate was pegged at 2 cents. JP Morgan did however warn that its credit losses were mounting.

While JP Morgan gained modestly to trade up 12 cents to $26.03, B of A recovered some of its early losses to trade down 14% to $8.79. Citi shed 9% to $4.13 at noon on the New York Stock Exchange.